10 Examples of Simple Interest

Simple interest is a fundamental concept in mathematics and finance that involves calculating the interest earned or paid on a principal amount over time at a fixed rate.

In this article, we will explore ten examples of simple interest.

Examples of Simple Interest

These are 10 examples of simple interest.

Example: 1

Principal amount: $1,000 Interest rate: 5% per year Time: 2 years Interest = Principal x Rate x Time = $1,000 x 0.05 x 2 = $100

Example: 2

Principal amount: $2,500 Interest rate: 4% per year Time: 5 years Interest = $2,500 x 0.04 x 5 = $500

Example: 3

Principal amount: $650 Interest rate: 7% per year Time: 3 years Interest = $650 x 0.07 x 3 = $136.50

Example: 4

Principal amount: $12,000 Interest rate: 3.5% per year Time: 1 year Interest = $12,000 x 0.035 x 1 = $420

Example: 5

Principal amount: $750 Interest rate: 2.5% per year Time: 6 months Interest = $750 x 0.025 x (6/12) = $9.38

Example: 6

Principal amount: $4,800 Interest rate: 6% per year Time: 9 months Interest = $4,800 x 0.06 x (9/12) = $216

Example: 7

Principal amount: $7,500 Interest rate: 8% per year Time: 2.5 years
Interest = $7,500 x 0.08 x 2.5 = $1,500

Example: 8

Principal amount: $9,800 Interest rate: 12% per year Time: 4 years Interest = $9,800 x 0.12 x 4 = $4,704

Example: 9

Principal amount: $650 Interest rate: 5% per year Time: 18 months Interest = $650 x 0.05 x (18/12) = $48.75

Example: 10

Principal amount: $1,200 Interest rate: 15% per year Time: 3 years Interest = $1,200 x 0.15 x 3 = $540